Swedish Tax Alert - Spring Fiscal Policy Bill: Key Tax Measures

The Swedish Government has today published its Spring Fiscal Policy Bill.

Following the drama of last autumn − when the socialist Government’s budget was voted down and the populist Sweden Democrats helped push through the budget of the four opposition parties – the opposition’s budget has served as the basis for economic policy so far during 2015. The Bill now being put forward includes the Government’s proposed economic policy ahead of the Budget Bill for 2016 as well as a few measures proposed to take effect in 2015.

  • A gradual phasing out of the current reduction in employer social security contribution for young employees, starting as of 1 August 2015
  • Abolished tax deductions for children’s home tuition and homework services, with effect 1 August 2015
  • Increased tax on (i) pesticide; (ii) natural gravel; and (iii) thermal effect in nuclear power plants, all with effect 1 August 2015.

Looking forward

The modified tax model proposed by the Swedish Corporate Taxation Committee (Sw. Företagsskattekommittén) on 12 June 2014 is being reworked and new rules may be introduced at the earliest 1 January 2017. The Committee’s main proposal was that there would be no tax deduction for net financial costs, allowing instead a general deduction ("financial allowance"). The proposal also included a special tax at a standard tax rate levied on banks and other financial institutions.

Click here for the full Spring Budget (in Swedish).

This article has also been added to Linklaters Knowledge Portal.

For more information please contact Ebba Perman Borg, Managing Associate Tax, +46 8 665 4138, Elin Delerud, Associate Tax, +46 8 665 6623 or your usual Linklaters contact.